Broadcom seeks over $60B in debt for AI chip financing deal

Broadcom is in talks with a group of lenders to raise more than $60 billion in debt for an artificial intelligence chip financing deal that would benefit Anthropic and other companies, Bloomberg reported Thursday.

The proposed financing could include between $60 billion and $70 billion of senior secured debt alongside roughly $30 billion of junior debt, potentially bringing the total package to as much as $100 billion.

Broadcom would guarantee a portion of the senior debt under the structure currently being discussed, according to people familiar with the matter.

Blackstone and Apollo Global Management are also in talks to participate after partnering with Broadcom in June on an initiative designed to finance large scale computing infrastructure.

The debt would be issued through a special purpose vehicle and could help Anthropic and other companies secure access to AI chips and related infrastructure.

The structure could resemble a $35 billion financing completed through the companies’ AI XPV partnership earlier this year. In that transaction, investors including Apollo and Blackstone financed purchases of custom Broadcom AI chips that were then leased to Anthropic.

Broadcom guaranteed most of the senior debt in that transaction, helping the financing receive investment grade ratings and lower borrowing costs.

The companies plan to use the broader partnership to finance more than 20 gigawatts of computing capacity, an expansion expected to require hundreds of billions of dollars.

Talks around the latest financing remain ongoing and the terms could change. The capital may also be raised in stages rather than through a single transaction.

The potential deal comes as technology companies and investors race to finance the data centers, chips and energy infrastructure required for increasingly powerful AI systems.

Nvidia earlier this month announced that a group of financial firms including BlackRock and Goldman Sachs was preparing more than $500 billion to support AI infrastructure development.

Broadcom is seeking to capture more of that spending through its custom AI chips and other data center products as it competes with Nvidia for infrastructure demand.

Broadcom Chief Executive Hock Tan said in March that the company expects annual AI chip sales to exceed $100 billion next year.

The chipmaker has also expanded its custom silicon partnerships with companies including OpenAI and Apple as demand for specialized AI hardware continues to rise.